Blockchain player Ripple is linking with MoneyGram to pilot XRP, the digital currency, for use in the latter’s payment flows.
In a Thursday announcement, the two companies said that MoneyGram would pilot the use of XRP though xRapid.
Under the terms of the new pact, MoneyGram will let people “safely and efficiently send cross-border payments to friends, families and business partners,” noting that the “current model for these payments requires money transfer companies to use pre-funded accounts across the globe to source liquidity. Newer blockchain technologies have the potential to revolutionize this process and optimize capital deployment.”
The linkup is strategic, the firms said, and will help MoneyGram delve into how blockchain can boost operations and improve efficiency.
In the statement, Ripple said that XRP remains the “most efficient digital asset for payments” with transaction fees that log in at fractions of a penny, while bitcoin fees are roughly $30 per transaction, and also touted the relative speed of XRP transactions, at seconds compared to several minutes to as long as an hour for other digital currencies.
Alex Holmes, who serves as CEO of MoneyGram, said, “Every day blockchain technology is changing the norm and encouraging innovation. Ripple is at the forefront of blockchain technology and we look forward to piloting xRapid. We’re hopeful it will increase efficiency and improve services to MoneyGram’s customers.”
Ripple, for its part, for a time was the second most valuable cryptocurrency, with a market cap that topped $100 billion earlier this year, and has pulled back by about half since then.
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